Updated September 2026 to reflect the Cyprus tax reform in force from 1 January 2026.

1. What are the corporate and personal income tax rates in Cyprus?

Companies that are tax resident in Cyprus pay corporate income tax of 15% on their taxable profits from the 2026 tax year (previously 12.5%).

Individuals who are tax resident in Cyprus pay personal income tax at the following rates from 2026:

For the full list of changes, see our 2026 Cyprus tax reform overview.

2. How long does it take to register a company in Cyprus?

The company name must first be approved by the Registrar of Companies. Once the name is approved and all documents are in order, registration usually takes 5 to 8 working days. Timelines depend on the Registrar.

3. Do the beneficial owners need to visit Cyprus to incorporate the company?

No. The beneficial owners do not need to visit Cyprus at any stage of the incorporation, unless they wish to.

4. What is a nominee director?

A nominee director is a natural or legal person appointed to the board on behalf of the client. Details of a company’s directors are available to the public through the Registrar of Companies, so some clients use nominee directors for privacy. The ultimate beneficial owner must still be disclosed to the authorities under Cyprus and EU anti-money laundering rules.

5. What is a nominee shareholder?

A nominee shareholder is a natural or legal person who holds shares on behalf of the client, usually under a declaration of trust. As with nominee directors, the ultimate beneficial owner must still be disclosed to the authorities.

6. What is a registered office?

By law, every Cyprus company must have a registered office address in Cyprus. Our firm can provide this service.

7. Does a Cyprus company need a licence for its activities?

Some activities do. Banking and other financial services require a licence from the relevant regulator, and businesses such as hotels and restaurants also need specific licences before they can operate in Cyprus.

8. What are the annual obligations of a Cyprus company?

Every Cyprus company must:

• Prepare audited financial statements and submit them with its annual tax return to the Cyprus Tax Department
• File an Annual Return with the Registrar of Companies, together with a Greek translation of the financial statements

The €350 annual company levy was abolished from 2024. Levies unpaid for the years 2011 to 2023 remain payable, with penalties.

9. How do I open a bank account in Cyprus?

There is no single procedure. Each bank applies its own know-your-client checks and asks for its own documents.

10. How long does it take to open a bank account in Cyprus?

It depends on the bank and on the company’s structure and activities. Once the bank has all the documents it needs, the process usually takes a few weeks.

11. What should a new company do after incorporation?

After incorporation, the company should:

• Register with the Cyprus Tax Department and obtain a Tax Identification Number
• Check whether it must register for VAT
• Register with Social Insurance Services if it will employ staff
• Record its beneficial owners in the Register of Beneficial Owners kept by the Registrar of Companies

12. Is a Cyprus company tax resident in Cyprus?

From 1 January 2026, every company incorporated under Cyprus law is tax resident in Cyprus, unless a double tax treaty provides otherwise. A company incorporated abroad can also be Cyprus tax resident if it is managed and controlled in Cyprus. Cyprus tax resident companies pay 15% corporate tax and can use Cyprus’s network of more than 65 double tax treaties, provided they meet the substance and beneficial ownership conditions.

13. Can a Cyprus company be tax resident in another country?

Only where a double tax treaty assigns its residence to the other country, typically because it is managed and controlled there. In that case the treaty decides where the company is taxed, and it may lose access to Cyprus treaty benefits. We recommend specific advice before choosing where to manage a Cyprus company.

This article gives general background on common questions about incorporating a Cyprus company. It is not tax or legal advice. Please ask us for advice tailored to your situation.